President Donald Trump has addressed the trend of film production moving abroad by suggesting imposing 100% tariffs on many movies produced outside the US, particularly impacting Hollywood.
For over a decade, the film industry has gradually been shifting away from Hollywood to cities in Georgia, Louisiana, New Mexico, New York, and Chicago. Filmmakers are increasingly choosing locations in the UK, Canada, Australia, and various European countries.
Despite efforts from California’s Democratic governor, Gavin Newsom, to attract filmmakers with tax incentives, many producers feel it’s too little too late. Production in the US has decreased by 40% and the downward trend seems to persist.
This situation has resulted in job losses for many in the film industry, forcing some to relocate to maintain their careers.
In light of this, Trump’s proposed tariff incentives aim to deter producers from leaving the country.
He took to Truth Social to express his concern over the decline in the US film industry.
“The American film industry is dying very quickly,” he remarked on Sunday. “Other countries are offering numerous incentives that keep filmmakers and studios away from the US. Hollywood and other regions are suffering. This is a coordinated effort by foreign nations, and, in addition to everything else, I’m proposing 100% tariffs on films that are produced abroad.”
However, Trump’s proposal has drawn criticism from many in Hollywood and the global film community. Publications like Variety have reported backlash from studio executives and producers regarding the tariff idea.
“This doesn’t make sense,” a British producer told Variety. “American films should be made in the US, but films that we know and love, like those in the Harry Potter and Lord of the Rings franchises, are produced overseas.”
“If this continues, it could hurt the industry significantly. But it won’t halt production entirely,” remarked another industry insider.
Officials in France countered the president’s policy, stating that their filmmaking processes are not subject to tariffs since they are considered a service rather than a product.
“Technically, movies are a service, and you can’t impose tariffs on them. Such actions would likely end up in court, taking months to resolve,” a French film industry insider stated. Another added, “We don’t sell tangible products, so it’s unclear how taxes would apply. It’s hard to understand the implications at this point.”
For now, much of the film industry is awaiting Trump’s next move regarding the tariff proposal. Many feel it’s premature to react until concrete actions are taken; social media posts are not a basis for planning.
“We have to see what Trump does next. It feels like a game of chess. The direction is uncertain,” Italian producer Marco Valerio Puguini commented.
Pugini also mentioned that certain films simply cannot be produced in the US.
Lastly, another industry insider expressed concern that heavy tariffs on film production might lead to unintended consequences.
“Ultimately, this just pushes studios toward greater reliance on AI,” warned Hans Freikin, a former head of Abu Dhabi’s film sector. He cautioned that such tariffs could accelerate global film production and its complete association with the US.
